Treasury Secretary Scott Bessent says Trump will reinstate full tariffs on nations not acting in ‘good faith’

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Summary

U.S. Treasury Secretary Scott Bessent confirms that President Trump will reimpose full tariffs on countries not engaging in 'good faith' trade talks, signalling a return to aggressive trade policies that could impact global markets, supply chains, and major retailers like Walmart.

U.S. Treasury Secretary Scott Bessent
U.S. Treasury Secretary Scott Bessent

U.S. President Donald Trump would reimpose tariffs at their originally announced levels on those nations that fail to engage in what his administration deems “good faith” trade negotiations, Treasury Secretary Scott Bessent confirmed in interviews on Sunday. The move, spoken of by Bessent, marks a return to the tougher stance Trump initially adopted in early April as part of his broader strategy to reshape U.S. trade relationships.

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In appearances on NBC’s Meet the Press and CNN’s State of the Union, Bessent said the administration is reviewing its 18 most critical trading relationships. He pointed out that countries who are judged not be negotiating well and sincerely will receive formal notifications specifying their new tariff rates, likely reverting to those declared on April 2.

“They’re not negotiating in good faith,” Bessent said. “They are going to get a letter saying, ‘Here is the rate.’ So, I would expect that everyone would come and negotiate in good faith.”

Although, Bessent has declined to clarify as to how the Trump administration defines ‘good faith,’ he did indicate that the timing of such letters, and the subsequent tariff hikes, will depend on the pace of the ongoing trade talks.

President Trump had initially imposed stiff tariffs on imports in early April but later relaxed those measures. On April 9, he reduced most import tariffs to 10% for a 90-day period to allow space for negotiations, and Chinese imports were adjusted to a 30% rate. However, Bessent signalled that these lower rates may soon be reversed if talks stagnate.

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He also suggested that Washington may begin grouping countries by region for future trade negotiations and tariff structures. “We might do a regional deal — this is the rate for Central America, this is the rate for this part of Africa,” he said.

Trump’s unpredictable approach to trade policy has shaken global markets, sending stocks of companies in a tailspin. The trade policy has also disrupted supply chains and have forced companies, like Apple, to adapt to the new reality.

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Retail giant Walmart, for instance, warned last week it would raise prices due to increased import costs. In response, Trump criticised the company, saying both Walmart and China should “eat the tariffs.” Similarly, in a bid to escape from the clutches of the tariffs, Apple signalled that it would move away the production of its iPhones slated for the U.S. markets from China and into India.

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